Global Partners

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 The Global Partnership for Ethiopia BV (“GPE” or the “Company”) was in May 2021 announced as the sole winner of Ethiopia’s unified telecommunication service license following a competitive bid process run by the Government of Ethiopia and the Ethiopian Communications Authority (“ECA”). Subsequently, the GPE formed Safaricom Telecommunications Ethiopia private limited company (“STE” or “Operating Company”), which was granted the License on 9 July 2021 by the ECA. The License authorizes STE to build, own and operate a nationwide public telecommunication network and offer telecommunications services. The Company and STE plan to roll out, launch and operate its 2G, 3G, 4G networks across the country with 5G in selected areas, enabling it to provide increased access to quality mobile and fixed connectivity solutions for individuals, corporates, and the government throughout the country (the “Project”). The project aims to support the transformation of a series of SDG verticals via the provision of advanced telecom services dedicated to such verticals, incl. education, agriculture, medical, manufacturing, and tourism. The Project aligns with the government’s plan to digitise the Ethiopian economy and shift from a state-oriented development model to more liberalized models, including within the telecommunication sector.  The proposed IFC transaction comprises an up to USD 160 million equity investment in the Company to help fund the STE’s capex requirement. A separate debt package is also being discussed. IFC’s investment will support STE’s countrywide mobile network roll-out and help position the Company to comply with the terms of its license, which outlines the requirement for (i) specified population and geographic coverage targets and (ii) reasonable tariffs, universal accessibility and teledensity target, amongst others. IFC will also be supporting a group of regional champions and leading global emerging market investors, including the Voda Family (Vodafone Group, Vodacom Group, and Safaricom plc), Sumitomo Corporation and British International Investment (the “Consortium”), in delivering an enhanced digital economy for Ethiopia.